Innovation Economy

Sunday, April 6, 2008

Sunday's column: Georges Doriot and the Origins of Venture Capital

Today's Globe column focuses on Georges Doriot, the founder of the modern venture capital industry...and the subject of a new book, "Creative Capital", by BusinessWeek editor Spencer Ante.

The opening:

Without him, Digital Equipment Corp. might never have gotten started, and the electronics-testing company Teradyne Inc. might not have survived beyond infancy.

He backed an oil rig-manufacturing company run by George H.W. Bush. The current Secretary of Energy, Samuel Bodman, once worked for his Boston firm. And a half-century ago, he put $50,000 into a company called Ionics Inc. that was trying to find new ways to desalinate seawater; GE bought the company in 2004 for $1.1 billion.

Georges Doriot is the forgotten grandfather of the modern venture capital industry. His Boston firm, American Research and Development, or ARD, helped lay the foundation for the Route 128 technology cluster.

Here's the video:

One correction to the column: Ante notes on his blog that the total amount ARD invested in Digital was more like $400,000; $70,000 was just the initial tranche.

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